Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Consumer Protection and Commerce, to which was referred H.B. No. 595 entitled:

begs leave to report as follows:

The purpose of this bill is to:

Testimony in support of this bill was submitted by Cash In Advance, Inc., and Kama'aina Loan. The Department of Commerce and Consumer Affairs (DCCA) offered several comments.

Your Committee finds that, currently, out-of-state check cashers have an unfair advantage over their Hawaii counterparts. This is in large part because out-of-state companies are engaging in interstate commerce in Hawaii, and thus under the commerce clause of the federal constitution they are immune to regulation under Hawaii's laws.

Your Committee believes that efforts should be made to level the playing field for Hawaii's check cashers. Your Committee concludes that extending the allowable check deferral period from 31 to 32 days, and increasing the maximum face value of a check cashed, from $300 to $600, are reasonable steps in that direction.

However, as highlighted by DCCA, your Committee has concerns relating to increasing the maximum fee for personal check deferred deposits from 15 to 20 percent and raising the dishonored check fee from $20 to $25. Your Committee feels the former will further burden consumers, whereas the latter will create an inconsistency with the Uniform Commercial Code. Accordingly, your Committee has amended this measure by deleting those sections.

As affirmed by the record of votes of the members of your Committee on Consumer Protection and Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 595, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 595, H.D. 1, and be placed on the calendar for Third Reading.